Fino Payments Bank has formally applied for a small finance bank (SFB) license, submitting its request to the Reserve Bank of India (RBI), as disclosed in a statement by the RBI on January 8. The application falls under the regulatory guidelines for ‘on-tap’ Licensing of Small Finance Banks in the Private Sector, dated December 05, 2019.
The strategic move comes after Fino Payments Bank’s board approved the proposal for transitioning into a Small Finance Bank on July 28. The payment bank emphasized its commitment to this evolution by establishing a committee to explore potential group corporate restructuring, evaluate associated implications, and consider other relevant factors.
As of 2:21 pm, Fino Payments Bank’s shares were trading at ₹296.95, reflecting a notable gain of 2.10% in response to the news. This development marks a significant step for Fino Payments Bank as it seeks to broaden its financial services offerings and play a more comprehensive role in the banking sector.
